Bank of America spent millions on anti-money-laundering tech, but not enough to avoid a $1.2B fine
Regulators fined Bank of America $1.2 billion for weak anti-money-laundering controls despite heavy technology spending.
Bank of America was fined $1.2 billion for money-laundering offenses after authorities found weak anti-money-laundering controls. CEO Brian Moynihan said the bank has spent billions on technology and assigned thousands of employees to combat financial crime, including a couple hundred million dollars in the third quarter on AML remediation. He said a similar amount was spent fixing software vulnerabilities, requiring about 1,000 consultants. The article says those vulnerabilities surfaced after the bank received an early Claude Mythos Preview, which Anthropic told a House committee had found thousands of high-severity flaws.
- Bank of America was fined $1.2 billion over money-laundering compliance failures.
- CEO Brian Moynihan cited hundreds of millions spent on AML remediation in the quarter.
- A similar sum and about 1,000 consultants went toward fixing software vulnerabilities.
- The article links vulnerability findings to an early Claude Mythos Preview release.
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Bank of America has had to spend big on IT in response to an AI security audit and findings that its anti-money-laundering (AML) controls were lacking.
The bank was fined a whopping $1.2 billion for money laundering offences this week, after banking authorities identified a lax attitude to compliance.
“We understand the seriousness of compliance, and we are responsible for getting it right,” Bank of America CEO Brian Moynihan said on a conference call to discuss the company’s third-quarter financial results. “We have invested billions of dollars in technology and dedicated thousands of employees to combat financial crime,” he said, adding that “a couple hundred million” of that spending in the third quarter was on “remediation for the AML”.
The IT team had to spend a similar amount on fixing software vulnerabilities in its systems, a task that also required it to hire 1,000 consultants, Moynihan said.
The bank’s security vulnerabilities were revealed after the company received an early release of Claude Mythos Preview. In a report to the US House of Representatives Financial Services Committee, Anthropic said that Claude Mythos Preview “has already found thousands of high-severity vulnerabilities, including some in every major operating system and web browser.”
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